Business ownership - AQANot-for-profit organisations
There are a number of options for the ownership of a business. Each ownership type has its own advantages and disadvantages and a business should choose the one that best suits its needs.
A not-for-profit organisation is a business that aims to do something other than to make profit for the owners, such as providing a public service or helping people. It needs to make enough money to cover its costs, but any surplus is reinvested into the business or used in other ways.
One example of a type of not-for-profit organisation is a charity. Charities are businesses whose aim is to raise money for good causes, or to help people, animals and the environment. Businesses with charitable status are funded mainly by donations, get some tax relief, and are eligible for certain types of grantA grant is money given to a business, usually by the government or lottery fund, that does not need to be paid back. .
Another type of not-for-profit organisation is a social enterprise, whose aim to help society. Social enterprises make money by selling products or services like a traditional for-profit business, but they use their profits to benefit society. Some examples of social enterprises include businesses such as The Eden Project, The National Trust, The Big Issue, and Divine Chocolate.
